Small Pools Allowance

[justinclarke]

Hi,

Just got an example and a question about the Small Pools Allowance.

Example A: I filled in my 1st self assessment tax return last year (2009/2010) and had an Annual Investment Allowance (AIA) of £700.

Question 1: I guess I would bring this forward and this would be my "main pool" for this tax year (2010/2011)?

Question 2: This tax year (2010/2011) can I then write off the whole amount (as it's less than £1000), how do I go about doing this and how does it effect my taxable income?

Does it go into "Allowance for small balance of unrelieved expenditure", "Other capital allowances" or "Total balancing charges – where you have disposed
of items for more than their value" on the form?

(those titles are from last years document so maybe named differently this year I guess)

Question 3: Once I have writen off the whole Small Pools Allowance amount what happens if I come to sell or dispose of the asset that originally made up the £700 AIA in year 1?

Thank you!

 

[Scalloway]

If you had an annual investment allowance in 2009/10 you would have written off all your capital expenditure for tax so you would have no pool to carry forward to 2010/11. Any income from written off assets sold is taken as a Balancing Charge in the Tax Return

 

[Ray Coman]

I can't think of a case where you would write off the samll pool and claim the Annual Investment Allowance.

The small poool allowance is a deduction where the brought forward value of the main pool is less than £1,000.

If the brought forward value is nil. The allowance is nil.

 

[justinclarke]

Thanks for our replies. I was getting confused with things I read online and now realise that my "pool" would be nil if I used AIA. Thank you.